Summary

Portrait of John Paul Stevens John Paul Stevens Massachusetts v. Morash — Opinion of the Court

Employees who are beneficiaries of such a trust face far different risks and have far greater need for the reporting and disclosure requirements that the federal law imposes than those whose vacation benefits come from the same fund from which they receive their paychecks. It is sufficient for this case that the Secretary's determination that a single employer's administration of a vacatio pay policy from its general assets does not possess the characteristics of a welfare benefit plan constitutes a reasonable construction of the statute.
Source: Wikisource

Portrait of John Paul Stevens John Paul Stevens Massachusetts v. Morash — Opinion of the Court

Most employers in the United States provide some type of vacation benefit to their employees. [15] ERISA coverage would put all these employers to the choice of complying with the statute's detailed requirements for reporting and disclosure or discontinuing the practice of compensating employees for unused vacation time. In addition, the extension of ERISA to claims for vacation benefits would vastly expand the jurisdiction of the federal courts, providing a federal forum for any employee with a vacation grievance.
Source: Wikisource

Portrait of John Paul Stevens John Paul Stevens Massachusetts v. Morash — Opinion of the Court

In reaching this conclusion, we emphasize that the case before us-and the Secretary's regulations on which we rely-concern payments by a single employer out of its general assets. An entirely different situation would be presented if a separate fund had been created by a group of employers to guarantee the payment of vacation benefits to laborers who regularly shift their jobs from one employer to another.
Source: Wikisource

Get perspective with Kwize: daily news enlightened by great literature